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Stells [14]
3 years ago
8

Assume that kubin company produced 20,000 units and expects to sell 19,800 of them. if a new customer unexpectedly emerges and e

xpresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?
Business
1 answer:
Alexus [3.1K]3 years ago
7 0
<span>Incremental cost: This is the cost which is added or incurred by producing an additional unit product or providing extra service.
   Answer: The incremental manufacturing cost/unit incurred to sell extra units to the customers is 0. This is because 200 extra units were already produced and was supposed to be remain unsold as out of 20000 units only 19800 units were expected to be sold.. But the customer unexpectedly came and demanded 200 units which otherwise would have been unsold.</span>
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Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.
never [62]

Answer:

the rate of return that expected on one year treasury security is 9.00%

Explanation:

The computation of the rate of return that expected on one year treasury security is as followS

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Therefore the correct option is d.

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2 years ago
How physical assets valuation and development and research pose risk.<br>​
Alex Ar [27]

Answer:

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Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

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  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
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Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

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